How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask VanDLaw Your Own Question

VanDLaw
VanDLaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 833
Experience:  Chapter 7 & 13
10801190
Type Your Bankruptcy Law Question Here...
VanDLaw is online now
A new question is answered every 9 seconds

I probably have to file for chapter 13 next year. I have 3

Customer Question

I probably have to file for chapter 13 next year. I have 3 rental properties. Two of which the banks have started the foreclosure process. I also have about $ 60,000 in credit card debt. I hear that the judge can restructure your loan on you second and third property so you can keep it. Is this true even if they are rental properties? How does this work?

Also, I'm about to get about $ 50,000 from an action suit. I'm planning to use this money to survive until I find a job. Can I keep this money if I file for bankruptcy? If not, can I deposit this money on my sister account?

Thanks
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  VanDLaw replied 6 years ago.

HelloCustomer

 

First, you must have lived in Florida for six months prior to filing bankruptcy in Florida. Then in order to use Florida bankruptcy exemptions you must have been a resident of the state of Florida for the past two years. If you have not lived in Florida for the past two years you must use the exemptions in the State of your last residence, provided you fit into their residency requirements for bankruptcy. The exemptions are what you get to keep in a bankruptcy, and are not subject to being seized by the Trustee to pay back your creditors.

 

In New Jersey you can elect to take the State exemptions or the Federal exemptions. The Federal exemptions allow a homestead exemption, whereas NJ has no homestead protection at all for real property.

 

In Florida a settlement or proceeds from a lawsuit are subject to being seized by the Trustee in its entirety, and they are as well if you use the Federal Exemptions.

 

If you use the New Jersey state exemptions PERSONAL INJURY SETTLEMENTS AND JURY AWARDS-a payment, not to exceed $18,450, on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or

PAYMENTS FOR LOSS OF FUTURE EARNINGS - a payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor.

 

So the $50K award you are going to receive will be seized in part by the Trustee if you file bankruptcy within one year of receiving the settlement. The same goes for a Chapter 7.

Bankruptcy does not discharge

  • Alimony
  • Child support
  • Most recent back taxes
  • Most Student loands
  • Recent large purchases of more than $550 for luxury goods bought
    within 90 days of filing
  • Fines or penalties of government agencies
  • Fraudulent debts
  • Cash advances of $825 within 70 days of filing
  •  

    For a Chapter 13 bankruptcy, you'll need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities). You must have no more than $922,975 in secured debt (debt involving property that your creditor might take if you don't make your payments) and $307,675 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. The court filing fee is $274 in every State.

     

    As for the restructure of your loans, you are going to have to convince the Trustee that you have enough disposable income to make the payment plan you get confirmed. If you want to surrender the homes, you may want to consider a Chapter 7, if you meet the means test. The unsecured debt goes away, and if you are current on your main residence you could reaffirm and keep that house. The other properties you could keep but only if you were current on the payments.

    Customer: replied 6 years ago.
    Thank you!! Do I need to be employed to file for Chapter 7 ? Do you have a site that I can check if I pass the means test? Regards
    Expert:  VanDLaw replied 6 years ago.

    No you do not need to be employed, that is just for a Chapter 13.

     

    Try this site for the means test. There are probably many others, I don't advocate one over the other.....but this should give you an idea.

     

    http://www.legalconsumer.com/bankruptcy/means-test/state.php?st=NJ

     

     

    VanDLaw, Attorney
    Category: Bankruptcy Law
    Satisfied Customers: 833
    Experience: Chapter 7 & 13
    VanDLaw and 3 other Bankruptcy Law Specialists are ready to help you
    Customer: replied 6 years ago.
    thank you!

    JustAnswer in the News:

     
     
     
    Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
    JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
    Web sites like justanswer.com/legal
    ...leave nothing to chance.
    Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
    Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
    I will tell you that...the things you have to go through to be an Expert are quite rigorous.
     
     
     

    What Customers are Saying:

     
     
     
    • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
    < Last | Next >
    • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
    • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
    • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
    • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
    • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
    • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
    • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
     
     
     

    Meet The Experts:

     
     
     
    • FiveStarLaw

      Attorney

      Satisfied Customers:

      3203
      Bankruptcy Lawyer. Experienced.
    < Last | Next >
    • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

      FiveStarLaw

      Attorney

      Satisfied Customers:

      3203
      Bankruptcy Lawyer. Experienced.
    • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

      Terry L.

      Attorney

      Satisfied Customers:

      2204
      Better Business Bur 15yrs bankruptcy experience. Chicago Bar
    • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

      Phillips Esq.

      Attorney-at-Law

      Satisfied Customers:

      950
      B.A.; M.B.A.; J.D.
    • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

      cortrightlaw

      Attorney

      Satisfied Customers:

      490
      Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
    • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

      JoeLawyer

      Attorney

      Satisfied Customers:

      376
      Attorney in the practice of Bankruptcy Law since 1996
    • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

      dylatess

      Attorney

      Satisfied Customers:

      370
      35 plus years of experience specializing in bankruptcy law
    • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

      Brent Blanchard

      Bankruptcy Attorney

      Satisfied Customers:

      315
      Twelve years experience in all aspects of debtor & creditor BK.
     
     
     

    Related Bankruptcy Law Questions